Florida Opening Back Up
It seems as if we’re starting to see the full effects that the coronavirus has had on the real estate market in the Tampa Bay area. While many other states are still under lockdown orders, Florida has started to open back up which has allowed for an increase in home showings and in turn contracts and home sales.
It seems as if the effect on real estate is highly localized. According to an article on Forbes.com “As mortgage applications, price appreciation and slowly growing new listings indicate that the national real estate industry is finally mending from the coronavirus, some housing markets are charting faster and stronger recoveries than others. The reasons why some cities are bouncing back quicker boils down to robust local economies, less severe coronavirus-prompted lockdowns and, in some cases, low numbers of COVID-19 infections.”
When this pandemic started, many people feared the worst for Florida. Considering the large amount of retirees in the high risk category, most of us assumed that we would be one of the hardest hit states in the nation. Unlike what happened with the aging population in Italy, it seems as if we fared pretty well here in Florida. I’m guessing this can be attributed to the more spread out living quarters that most of us are able to enjoy in Florida compared to the more densely populated cities in Italy.
The Effect Of COVID On New Homebuyers And Existing Homeowners
With record low interest rates it seems as if many people are taking advantage of this situation and buying homes or refinancing. Unfortunately some people that own rental properties are not in such a favorable situation. The people who have been displaced from their jobs from this pandemic including hospitality and retail works are typically the same people that are renting. Many are not able to pay their rent and the Florida unemployment system is still backed up over 2 months later.
Tampa Bay Times put together an article and interviewed people who have applied for unemployment assistance. “Over the past month, the Times/Herald interviewed 40 Floridians who, like Jackson, have struggled to receive benefits during the pandemic. Reporters spent hours on the phone with them, viewed screenshots of their claims and sent their names, phone numbers and claimant ID numbers to the Department of Economic Opportunity to verify if they were eligible. Of the 40 people, half have started to receive payments, department spokeswoman Tiffany Vause said in a Friday statement. The rest are in the “review process” for state or federal benefits, she said.”
Although the burden of a non-paying renter falls on the landlord, there are now programs in place that allow forbearance of a mortgage payment for both your primary residence and investment properties. With that said, be sure to review all the details of what your lender’s forbearance entails before you sign. According to an article on Forbes “John Ulzheimer, an Atlanta-based credit expert formerly of FICO and Equifax, warns of the potential downside to signing up for a mortgage forbearance program: “If the lender or servicer demands that you pay back the deferred amount all at once or in an otherwise expedited manner, that could be impossible for the borrower. Unfortunately, having a mortgage servicer ask for a “balloon” payment once your forbearance period ends is a very real possibility. Borrowers from multiple national banks have reportedly been informed of the need to repay any delayed payments in a lump sum at a future date.” dfsd
With the first half of 2020 off to a pretty crazy start, let’s not lose sight of the fact that St. Pete is an amazing growing city and in my opinion the most exciting place to live in Florida. All of this chaos is temporary and the best for this city has yet to come. I know many people are waiting for property to become more affordable in this area but I’m not sure how realistic that is. I wrote this article to explain more – Top 4 Reasons Preventing Real Estate In St. Pete From Becoming A Buyers Market.
Thanks for reading and as always feel free to reach out to us whenever with any questions. Do you have any friends or family that would enjoy our monthly updates? Feel free to send them this link to sign up. You can call or text me (Chris) at 727-307-1111 or email us at email@example.com.
Recommended Articles Of The Month:
For this update, we’ll highlight some must-reads we’ve written:
Top 4 Reasons Preventing Real Estate In St. Pete From Becoming A Buyers Market – A few reasons why the coronavirus may not have a strong impact on our local housing market.
Here are some news stories you may love!
Bars & Movie Theatre’s throughout Florida Allowed To Open Friday June 5th – Businesses throughout most of Florida allowed to open up at half capacity starting Friday.
COVID Related Grants For Local Businesses – From the cities program “Restart St. Pete”.
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